$ 1,000 The value of the bond will not change.
It is impossible to determine whether the bond ' s value will increase or decrease.
Question 4. 4.( TCO 5) Gina has recently become a widow with two small children, and wants to make sure that both she and the children are taken care of in the future. She received a check for $ 350,000 from a life insurance company. Based on this information, Gina places a high degree of importance on
beta. safety. business failure. market risk. liquidity.
Question 5. 5.( TCO 5) Mary Ann recently received a $ 20,000 gift from her uncle and is considering investing in stocks, because she knows that historically they have earned an approximately 10 – 12 % rate of return over the last few years. Referring to aspects of investing, Mary Ann is most concerned about which of the following?
Risk Return Diversification Liquidity Income